The story centres on a young engaged couple whose car breaks down in the rain near a castle, where they seek a telephone to call for help. The castle or country home is occupied by strangers in elaborate costumes celebrating an annual convention. They discover the head of the house is Dr. Frank N. Furter, an apparently mad scientist who actually is an alien transvestite from the planet Transsexual in the galaxy of Transylvania, who creates a living muscle man named Rocky in his laboratory.

The film was shot in the United Kingdom at Bray Studios and on location at an old country estate named Oakley Court, best known for its earlier use by Hammer Film Productions. A number of props and set pieces were reused from the Hammer horror films. Although the film is both a parody of and tribute to many kitsch science fiction and horror films, costume designer Sue Blane conducted no research for her designs. Blane has claimed that her creations for the film directly affected the development of punk rock fashion trends, such as torn fishnet stockings and colourfully dyed hair.^[8]

Initial reception was extremely negative, but it soon became a hit as a midnight movie, when audiences began participating with the film at the Waverly Theater in New York City in 1976. Audience members returned to the cinemas frequently and talked back to the screen and began dressing as the characters, spawning similar performance groups across the United States. At almost the same time, fans in costume at the King's Court Theater in Pittsburgh began performing alongside the film. This "shadow cast" mimed the actions on screen above and behind them, while lip-synching their character's lines.

Still in limited release in 2023, some 48 years after its premiere, it is the longest-running theatrical release in film history. In many cities, live amateur shadow-casts act out the film as it is being shown and heavily draw upon a tradition of audience participation.^[9] The film is most often shown close to Halloween. Today, the film has a large international cult following and has been considered by many as one of the greatest musical films of all time. In 2005, it was selected for preservation in the United States National Film Registry by the Library of Congress as being "culturally, historically, or aesthetically significant."

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